BWD Obtains New Water and Wastewater Infrastructure Funding
Last updated 10/13/2021 at 2:32pm
It is necessary that the Borrego Water District undertake construction projects to repair and replace water pipelines, wells, storage tanks and the wastewater treatment plant. The Borrego Water District maintains approximately 90 miles of water pipelines, the vast majority of which in need of replacement. The District funds these projects thru various water rates and charges in addition to a focused effort to obtain Grants as often as possible.
When cash is needed for capital projects, the District has the option of bond financing. In today’s financial climate, bond financing is very attractive. On October 1, 2021, the District will close on refinancing $4.4 Million of outstanding 2018 bond funds which will save the District approximately $550,000 in today’s money on interest payments by dropping the rate from 3.8% to 2.19%. This 15-year refinance also included an optional new bond issue of up to $3 Million to use for pipeline replacements, well upgrades, final expenses to complete the sewer line replacement in front of La Casa Del Zorro and to finish new production well #ID5-15. This bond issuance is intended to keep BWD’s capital improvement program fully funded for at least the next five years.
District staff has put years of hard work into pursuing grants, and it’s finally paying off! In the past month, The District has received approval from the Department of Water Resources for a grant provided by the Clean Water State Revolving Fund thru an agreement with the State Water Resources Control Board using grants from the US EPA and state bond proceeds. The Grant approved $788,911 to renovate the wastewater treatment plant to like new condition which will keep it fully operational for decades into the future.
The District is also expecting a $2 Million water grant that will fund the replacement of the Twin Tanks, Indian Head Reservoir and Rams Hill Tank #2 and upgrade the backup diesel motor at the Wilcox Well. Work is scheduled to begin in late 2021 at the wastewater plant and mid 2022 on the water projects. Further details can be found on the Borrego Water District website (borregowd.org).